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What is a potential consequence of false orders and subsequent cancellations?
  • a)
    Increased customer satisfaction
  • b)
    Efficient capacity utilization
  • c)
    Excess purchased material in inventory
  • d)
    Reduced manufacturing lead times
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
What is a potential consequence of false orders and subsequent cancell...
False orders, often caused by lack of customer confidence or sales personnel actions, can result in excess purchased material in inventory. This can lead to increased costs and underutilized capacity.
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What is a potential consequence of false orders and subsequent cancellations?a)Increased customer satisfactionb)Efficient capacity utilizationc)Excess purchased material in inventoryd)Reduced manufacturing lead timesCorrect answer is option 'C'. Can you explain this answer?
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